Tag Archives: Counterfeiting

Are You a Pirate?

In my town piracy, I suspect, is the norm. But in an effort to to see whether that’s true, and how that compares to other places, I’ve launched a survey, which I hope you, dear reader, will take a few minutes to complete.

It’s entirely anonymous, I’m not connected to the industry, and I have no intention of kowtowing to anyone, except perhaps my wife.

The questions are kind of designed to find out how widespread consumption of pirated content is and where, if any, the moral boundaries lie.

Thanks in advance for any time you spend on it. Feel free to pass it on to a friend. If you’d like to be added to a list of exclusive Loose Wire Surveyors, with the chances of free prizes and glory, drop me a line.

Needless to say, the irreverent tone of the survey is not meant in any way to condone or encourage piracy or the consumption of pirated materials. And this survey has been created using entirely non-pirated software. So there.

Oh and if you came here by mistake looking for pirate outfits, you can buy ’em here. (No the survey isn’t sponsored by them, although that’s a great idea.)

Playing the Software Pirates at Their Own Game

In the last post I prattled on about how Microsoft et al didn’t get it when it comes to dealing with piracy. So what should they do?

I don’t know what the answer is, but I’d like to see a more creative approach. After all, these pirates have an extraordinary delivery mechanism that is much more efficient than anything else I’ve seen. Why not try an experiment whereby a user who buys counterfeit software, either knowingly or unknowingly, has six months’ grace period in which to ‘activate’ a legitimate version? This could be done online by a key download and a credit card. No big software downloads — prohibitive in a country where Internet speeds are glacial — and no shipping (time-consuming, and often not possible from most suppliers). Instead, a downloaded widget would scour the program the user wants to ‘activate’, check its version and integrity (I’m not talking values here, I’m talking software) and install whatever patches are necessary (hopefully done without need for a full upload.) After that, the software is legit.

Software vendors would argue that this encourages piracy. I would argue: if the user can’t buy a legitimate version of your software in the country they live in, either online or offline, should they just not use your software? Or

Secondly, I would argue that this approach is not far removed from the shareware try-before-you-buy approach whereby users get to play with software for free for 30 days or so before buying. Of course, if they want to, the user could just not pay and continue using the software. But I suspect that they weren’t the kind of customer who was going to pay anyway, so you can hardly count them as lost business.

Lastly, it may be possible to use this approach to disrupt the economics of the pirate software network by embracing the shareware model. Instead of restricting distribution of your product, you flood the market with shareware versions of your software, allowing users a grace period in which to try out the software. If users can find trial copie of OneNote or PhotoShop or whatever free in every computer shop they visit, why would they bother buying a dodgy pirate copy that may or may not work? Sure, the free version needs paying for at some point, but that’s the point. The piracy market exists in part because people don’t have access to legitimate software — certainly not the range of legitimate software — in these places.

OK, that’s not always true. There will always be pirates, and there will always be people who buy from pirates, even if the legitimate software is available next door. But I suspect a lot of people who buy pirate software buy it to experiment, to try out software. Indeed, someone living in a place like Indonesia is likely to be familiar with many more software programs than someone living in a non-pirate-infested country. It’s not that these people want this software desperately, nor that they would buy it all full price if they had to. They buy it because the price is so low, they may as well buy it and try it. Do they keep it installed? In most cases, probably not. But the calculation for Microsoft et al should be: How many of these people would buy this software if, after trying it, they liked it?

Finding the answer to that question will give you an idea of the real losses Microsoft and co are incurring in lost business. It should also make them realise that not doing a decent job of making their software readily available in a place like Indonesia — at a price that reflects the purchasing power of the local consumer — is creating this highly efficient, but highly parasitical economy in pirated software. If they can reach their customers through that economy, or bypass it with widely available shareware versions of their programs — then they may stand a chance.

The Tilted Software Piracy Debate

Software piracy is a tricky topic, that requires some skepticism on the part of the reporter, though the media rarely show signs of that in their coverage. Here’s another example from last week’s Microsoft press conference in Indonesia, one of the prime culprits when it comes to counterfeit software:

JAKARTA (AFP) – Software piracy is costing the Indonesian economy billions of dollars each year and is stymieing the creation of a local information technology industry, a Microsoft representative said.

There is some truth to these statements, but it’s not really what Microsoft is interested in. First off, is it really the Indonesian economy that’s suffering because of piracy? One could argue the Indonesian economy is largely built on pirated software, as a kind of subsidy (like gasoline, which was until recently heavily subsidized.)

Secondly, when did Microsoft ever support the creation of a “local information technology industry”? That’s not their job — and I don’t blame them — but why hide behind this kind of argument? (Interestingly, there’s a lively Linux development community in Indonesia, but I’m not sure that’s what Microsoft is talking about here).

Some 87 percent of computer software on the market in Indonesia in 2005 was pirated, Microsoft Indonesia’s Irwan Tirtariyadi said citing a study from the Business Software Alliance, an organisation representing manufacturers.

That’s probably about right. It’s huge. It’s hard to find a company that doesn’t use pirated software. You can buy pretty much every program ever written, and I don’t know of a single person who uses a computer and who doesn’t buy pirated software. This is not to condone it, but I also only know of about half a dozen shops in a city of 12 million people which actually sell legal software. And forget buying online: Most companies won’t ship to Indonesia.

Lax law enforcement and widespread corruption contributed to Indonesia clocking in with the fifth highest rate of software counterfeiting in the world, he said, after Vietnam, Ukraine, China and Zimbabwe. “I’ve heard when police come to a shop (selling pirated software) it is closed. Basically information is leaking and this is an indication of the quality of law enforcement in action,” Tirtariyadi said.

This is part of the problem, it’s true. The malls are full of shops openly selling pirated software, often on the ground floor near the entrance, with policemen patrolling by. When a raid is planned, everyone knows about it, the shops quietly shut, cover their wares in tarpaulins and keep their heads down for a day or two. (Sometimes it’s hard to tell whether the imminent raid is from the police or some Islamic group cracking down on the counterfeit DVD stores, which often sell software too.)

Tirtariyadi told a gathering of foreign reporters that if piracy dropped by just 10 percent, it would add 3.4 billion dollars to the economy, according to figures cited by the International Data Corporation.

Could someone please explain to me how that figure came about? To me it sounds suspiciously as if the argument is based on a false premise: That everyone who buys pirate software would pay full price for legitimate software if there was no alternative. Let me think about that: $3 for brand new software — often a collection of software — against $50–500 for the same thing, in a country where half the population earn less than $2 a day. I don’t think so.

Counterfeiting also inhibited an “inventive culture” and the development of a strong local information technology (IT) industry here, he said. “Some students like to create new software but three months later they find it’s pirated,” he said.

True, there is definitely an inhibiting factor. I wrote a year or so ago about a guy developing a machine translation program which wasn’t bad, but which required him to spend at least half his time developing anti-piracy features in the software. But I still think this is a disingenuous argument. Let’s face it: Microsoft (and Adobe, and all the other BSA big boys) are mainly interested in quashing piracy of their products and building up their market share; I don’t see much sign of Microsoft actually nurturing this “local IT industry”.

Indonesia, Southeast Asia’s largest economy, has less than 100 IT companies, whereas neighboring Singapore, with a far lower rate of piracy, has between 400 to 800 such companies, he added.

This is not a useful comparison. Singapore is a highly developed country and one of the world’s technology hub. Though, interestingly, it’s not really a locally creative industry, with the exception of a couple of big names.

All this makes me realise that Microsoft et al still don’t get it. Piracy is massive; they’re right. But you don’t deal with it by sponsoring misleading press conferences and well-telegraphed police raids.

News: The MP3 Party Is Over?

 CNN reports that more than a million households deleted all the digital music files they had saved on their PCs in August, a sign that the record industry’s anti-piracy tactics are hitting home. It quoted research company NPD Group as crediting the ongoing anti-piracy campaign by the Recording Industry Association of America (RIAA) and said publicity about the move led more consumers to delete musical files. In August, 1.4 million households deleted all music files, whereas prior to August, deletions were at much lower levels, according to Port Washington.